The Ups and Downs of Moncton’s Housing Market

2011 has been an interesting year for new housing in Moncton. Depending on who you ask, and what segment you are looking at, the market has seemed either good or bad.

Multiple Starts Down

Significantly in Greater

Moncton

The new homes market in Greater

Moncton recorded a year-over-year

decline of 29.5 per cent in multiple

starts during the second quarter of

2011. Activity in the rental market,

in particular, was weak during the

second quarter of 2011, with a total

of 26 apartment starts in the Moncton

CMA, all in Moncton City proper. In

comparison, 103 apartment starts

were recorded in Moncton City

during the same period last year, with

an additional 48 units in Riverview.

Semi-detached starts, which were

off to a slow start during the winter

months, rebounded during the second

quarter, with a significant year-overyear increase in starts. Despite the

strong performance, the number

of unabsorbed units, which had

previously peaked at a historically

high level in 2009, continued to trend

downwards in 2011 as supply and

demand continued to move towards

a more sustainable balance. Even

though semi-detached homes remain

the starter home of choice in Greater

Moncton, a growing number of new

units have started to command higher

prices as consumers seek increased

amenities.

Single starts were solid in the

Moncton CMA during the second

quarter. A notable year-over-year

increase in both Moncton City and

the Town of Riverview, however,

was offset by fewer starts in Dieppe

City and the remainder of the CMA,

resulting in a 7.6 per cent, year-overyear decline for the quarter. Despite

fewer starts during the second

quarter, the average price of a newly

absorbed, single-detached unit was up

5.2 per cent to $265,634. Year-to-date,

the price change was negligible, down

0.2 per cent.

Single Starts Decline in the

Provincial Capital

In the second quarter of 2011, singledetached starts in Fredericton were

down 24.6 per cent to 86 units. The

avera

When looking for housing data, we frequently turn to the Canada Mortgage and Housing Corporation (CMHC). CMHC is Canada’s national housing agency. While they are perhaps best known for providing mortgage loan insurance, they also are a leading source of housing data, and one of the first places market researchers turn to when looking at trend in the real estate market.

Each quarter they release a quarterly ‘Housing Now’ report for various cities across Canada. The report provides insightful analysis of local housing markets and a summary of housing statistics, including starts, completions, dwellings under construction, absorptions, real estate sales and home prices, as well as key economic indicators.

Here are some of the CMHC highlights about the real estate market in Moncton:

Apartments Down

New multiple starts (i.e. apartments, condos and row houses) recorded a substantial decline of 29.5 per cent a year-over-year decline during the second quarter of 2011. New rental starts were particularly week, with just 24 new apartments breaking ground in the Moncton region. This compares to 151 apartment starts in the region during the same period in 2010

Semis Up

Semi-deatched starts did significantly better. After a slow winter, they rebounded during the second quarter, with 184 new duplexes getting underway—a 19.4% year-over-year increase. While semi-detached homes remain the starter home of choice in Greater Moncton, a growing number of these new units are being built with increased amenities and commanding higher prices.

Mixed Singles

Single-family home starts were a mixed story during the second quarter, While parts of the region—notably Moncton and Riverview saw notable increases, they were more than offset by fewer starts in the rest of region. As a result, single family starts were down 7.6% during the period. Despite the fewer starts, however, the average price of a single-detached house was up 5.2 per cent to $265,634 over 2010.